2Louisiana Casinos - 22 1 Landbase Casino in New Orleans 15 Riverboat Casinos3 Racinos with no Table Games, and3 Indian Gaming Casinos
3TITO History in Louisiana In early 2001, Indian Gaming Casinos first started using TITO and were the first to go 100% TITO.In June 2001, Louisiana’s first Riverboat Casino submitted Internal Controls for a TITO System. (Horseshoe)Soon after, others followed.
4Louisiana TITO Statistics 100% of the 22 casinos have some TITO capability.95% or 21 casinos have 75% or more of their slots TITO capable.50% or 11 casinos are 100% TITO capable.
5TITO Systems - Louisiana Easy Play – IGT pre-configured slot machinescan be used as a standalone system or interfaced with a slot system to allow a greater control over employee theft.Quickets -Aristocrat - works with the old CDS and newer OASIS systems.E Ticket - Bally's system for SDS version that supports two ticket types, Type 5 (slot-created) and Type 7 (externally created).Fast Cash - Harrah's proprietary name for e-Tickets manufactured by Bally's.EZ Pay - IGT’s voucher validation/redemption systemSupports Handheld redemption systems, andCan be used as a stand alone TITO system
6Revenue/Jackpot Reporting 2 MethodsTickets Redeemed MethodCash Basis – LouisianaTITO Tickets not deducted until redeemedNo adjustments necessaryTickets Issued MethodTITO Tickets deducted when issuedRequires adjustments
7Tickets Redeemed Method RevenuesTickets counted in Soft Count.Jackpot DeductionsTickets in counted in Soft Count, andValidated Tickets from Cages and Kiosks;To take the deduction, the casino must have:A TITO system report showing ticket validation, andThe actual TITO Ticket.
8Tickets Issued Method Revenues Jackpot Deductions Tickets redeemed in BVA’s and counted in Soft Count.Jackpot DeductionsAll Tickets Issued for the day.After the expiration date, TITO Tickets not redeemed must be added back to revenueCasinos have different TITO expiration periods.
9TITO AUDIT PROGRAM 2. Ticket Kiosk/Patron Self-Service Machine Included in 5 areas of our Audit Program1. Gaming Revenue Summary Audit2. Ticket Kiosk/Patron Self-Service Machine3. Accounting Department Audit4. Soft Count Audit5. Jackpots and Fills Audit
101. Gaming Revenue Summary Audit Trace amounts casino reported to the backup and source documentstickets redeemed report, andsoft count validation report.Review a sample of tickets to ensure the casino is not deducting:expired tickets;voided tickets, andtickets the system is unable to validate.
112. Ticket Kiosk/Patron Self- Service Machine Observe casino employees impressing the machines, removing money cans and tickets, and balancing the machines;Although these machines also act as bill breakers, theses steps help ensure:the tickets are paid correctly, and are properly validated and reported.
123. Accounting Department Audit Observe and question casino accounting personnel during their review of TITO information and their creation of the required TITO reports.
134. Soft Count AuditObserve count team performing test count to verify the accuracy of the ticket counter machine.Manually count tickets from two BVA’s, and then run them through the ticket counter;Compare the machine count to the manual count, andOnce the counts reconcile, process all tickets through the ticket counter.
145. Jackpots and Fills Audit Observe and question slot and cage employees, to determine if they know how to handle different ticket situations;Such as tickets the system is unable to validate.Review a sample of tickets to verify they contain required information.
15TITO Problems With Valid Tickets Duplicate Tickets, andTickets the system validates but the scanners cannot read.
16Duplicate TicketsSince ticket validation numbers are randomly generated, the system sometimes issues a validation number that’s already been used;Ticket can be manually redeemed and validated;Accounting can get the Slot department to print a report showing the validation number was re-issued on a 2nd slot machine (different asset number), andAccounting can attach this report to it’s paper work as verification the ticket was actually valid.
17Valid tickets that count scanners cannot read Sometimes tickets that were read by a slot machine or kiosk cannot be read by the scanners in soft count or in the Main Bank/Vault. Usually a mechanical error when the counter misses some bar codes.Accounting can compare the Soft Count report to the System Exception Report. Tickets not on the count report are considered either "missing" or "pending" (terminology is dependent upon the system).Accounting can look up the “missing” tickets on the system exception report.Can claim as revenue/deduction because a slot machine issued the ticket and either a slot or kiosk validated it.
18Employee TITO Scam Employee opened slot without his access card; Quickly pulled the door switch so SDS did notread door open;Pulled up the option menu and disabled SDS;Took tokens from the hopper, feed them into the machine and accumulated credits;Hit cash-out and printed a ticket, andPassed off the ticket to a friend, who redeemed it at the cage and gave him a portion of the proceeds.
19Kiosk TITO THEFT January 2006, a patron committed a theft at a malfunctioning kiosk;He put a $10 TITO voucher into the kiosk and it dispersed $40 in cash;Machine dispersed $20 bills when it should havedispersed $5 bills ($5 Canister contained $20 bills).He was arrested and, admitted to redeeming more than 38 tickets;Received approximately $1,980 in cash from the malfunctioning kiosk;Stated he played most of the money back, felt casino should write it off.
203 Recent TITO System Problems 2 ACSC System Upgrade Issues;Invalid code input during upgrade caused system to lose TITO information which resulted in:a casino’s inability to validate about $80,000 of TITO tickets, anda casino’s slots becoming inoperable for 6 hours.1 Resource Problem with SDS System;resulted in a casino’s inability to validate about $200,000 of TITO tickets;error occurred slowly over 5 months in small crashes, inexperienced IT personnel caused major database corruption trying to resolve the problem.
21Causes of TITO Problems Lack of trained IT personnel at casinosLack of casino investment in IT area (hardware, software, etc.)Slot Monitoring Systems lack of security features to support advances in technology used in casinos today. (bonusing, promotions, smart cards, etc.)
22What’s next? Electronic Bonusing & Promotions Bonusing - Patrons inserts player cards, play cash, and receive non-cashable bonus credits they can download to any slot and play.Promotions – Patrons insert player cards, and automatically receive non-cashable promo credits they can download to any slot and play.
23Other Issues TITO Reports / TITO Ticket Retention -Louisiana Five (5) years for reports, andEighteen (18) Months for TITO Tickets.No IRS requirementsNo Signatures on tickets
24Proposed Cage Created TITO Tickets TITO Tickets created at the Cage cannot be considered Jackpots or be deducted from revenue because they are not generated at a slot machine;Problem: distinguishing Cage created TITO Tickets from slot machine issued tickets for revenue reporting purposes;May resolve with 2nd phase of COINS.
25Coupons Redeemable in BVA’s Mailed or handed out to patrons;Bar Coded like TITO Tickets;Accepted in BVA’sCannot be cashed at the Cage;Considered revenueunlike TITO Tickets, deductions from revenue are not allowed.
26What’s down the road? CASHLESS - Electronic Cards Patron accounts require a player card and a PIN;Patrons can purchase credits on their accounts at Cages or at slots;Patrons can download or upload credits from slots machines by inserting their player card and entering their PIN;Player credits will have to be considered a liabilityquestion of an expiration date.
27SummaryThe IT departments at the casinos in our jurisdiction lack adequate knowledge about the systems.We are trying to use this knowledge to encourage the manufacturers to adequately train the regulators because they told us they do not want to train the casinos’ IT personnel.Your thoughts on any of the items I covered today will be appreciated.
28Where to Get More Information The following information can be obtained by sending an to:Copy of slide showList and brief description of the different TITO systemsLouisiana TITO, Kiosk, and other LSP Guidelines can be found at on the following web site